Ola, a ride-hailing platform has shut down its used vehicle business whcih was called as 'Ola Cars' as well as 'Ola Dash'. The quick-commerce business from Ola, took the decision at a time when Indian companies are pouring money into the 10-15 minute grocery delivery market.
The organization has shut Ola Cars within one year of its launch, as it focuses on its electric two-wheeler and car verticals.
Furthermore, Ola has further shut down Ola Foods, food panda, Ola Cafe, and now took the decision to close the Ola Dash service as well.
In an official statement, Ola stated: "Ola has reassessed its priorities and decided to shut down Ola Dash - its quick commerce business. Ola will also be reorienting its Ola Cars business to focus more on strengthening the go-to-market strategy for Ola Electric."
It added that Ola Cars' infra, technology and capabilities will be "repurposed towards growing Ola Electric's sales and service network".
Ola now aims to invest more towards its electric car, cell manufacturing, and financial services businesses.
Ola Dash shuts down at a time when India's quick commerce market is all set to witness 15 times growth by 2025, reaching a market size of nearly $5.5 billion.
The total addressable market for quick commerce in India stands at $45 billion, and urban areas are driving this market on the back of mid-high-income households.
Zomato on Friday poured Rs 4,447 crore into acquiring quick-commerce grocery delivery platform Blinkit.
In December 2021, Swiggy announced to pour $700 million into Instamart.
Last month, 10-minute delivery platform Zepto raised $200 million, taking its valuation to around $900 million.
Ola Electric is also facing scrutiny over faulty batteries in its electric two-wheelers, among other EV players like Okinawa Autotech, Pure EV, Jitendra Electric Vehicles, and Boom Motors, by the government.
The Bureau of Indian Standard (BIS), which comes under the Union Consumer Affairs Ministry, has published the "performance standards for electronic vehicle batteries" in a bid to keep a strict control over the manufacturing of EV batteries.
Inputs from IANS